Sir, - The current excessive level of oil prices is not only likely to continue but will probably get worse, because the increase of 800,000 barrels announced by OPEC in the daily production figure is quite misleading. This extra production is based on the original daily figure laid down by the members of OPEC, but for some time now they have been exceeding it by 700,000 barrels per day. This means that the proposed daily increase will amount to only 100,000 barrels, which will have no effect on the current scarcity.
The answer to the problem is to lift the ignominious sanctions on Iraq, which has the second highest oil reserves in the world, and release its oil onto the world market. The US will veto any such action, of course.
Unfortunately, the European Union has to purchase all its oil, and pay for it in dollars, on the world market, seriously weakening the value of the euro and the solidarity of the EU.
Basically America is opposed to a strong EU with a strong currency because together they create effective competition for the dollar. Currently the EU has a population of 400 millions and the US 260 millions. President Clinton recently put pressure on OPEC, through his ally Saudi Arabia when oil was $30 a barrel, to reduce the price by increasing production. Today the price is $35 and rising. Anything that weakens the EU pleases the US. Could there be a hidden US anti-EU agenda, one wonders. - Yours, etc.,
W.G.A. Scott, Friars Hill, Wicklow.